Budgeting, Forecasting and Financial Reporting for Healthcare Providers
Using BusinessObjects Planning and Consolidation
March 23, 2010
Budgeting, Forecasting and Financial Reporting for Healthcare Providers
Using BusinessObjects Planning and Consolidation
March 23, 2010
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AgendaAgenda
Introduction
Corporate Overview
Edgewater’s Healthcare Experience
Challenges in Today’s Healthcare Environment
SAP BusinessObjects Planning and Consolidation (BPC)
SAP BPC Live Product Demo
Q&A and Contact Information
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Consulting Firm Advisory Services Vertical Services Enterprise Applications Strategic Technical & Data Services
Founded in 1992 Headquartered in Wakefield, MA 335 Employees, 238 Consultants Large North American Footprint Focus on Middle and Global 2000 Market Publicly Traded (NASDAQ: EDGW)
Corporate Overview
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Edgewater Technology: Service OfferingsEdgewater Technology: Service Offerings
Edgewater’s integrated offerings bring the best of business, technical and data management expertise to solve client business problems
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Cancer Center: Enterprise DW for Personalized MedicineCancer Center: Enterprise DW for Personalized Medicine
The Need• Focus on Personalized Medicine
• Numerous, Diverse Source Systems
• Lack of Integration: Data, Process
• Needed a Strategy for Enterprise Data
The Solution• Integrated 14 Subject Areas
• Comprehensive Data Architecture
The Benefits• “360º View of the Patient”
• For-Profit Partnership
o Attracting $90M+ in Investments
o New Licensing Revenue Streams
Requirements: Clinical, Business, Technical, Data, Analytics
Roadmap & Plan
Technology Architecture
Vision
Current State Assessment Gap Analysis
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Healthcare Provider: Surgical Analytics PlatformHealthcare Provider: Surgical Analytics Platform
The Need• Needed an Enterprise Data Strategy to Leverage
Anticipated EMR Implementation
• Identified an Initial Focus Area as a Proof-of-Concept for the Enterprise Strategy
The Solution• Surgical Services Analytics Platform
• Integrated 4 Application Systems from 7 Hospital Sites
The Benefits• Enables Unified Clinical, Operational, Financial Views
• Projected Savings of $5M+ in First Year of Use
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Healthcare Provider: Surgical Analytics PlatformHealthcare Provider: Surgical Analytics Platform
WHERE are we ACHIEVING our QUALITY GOALS across SERVICE LINES?
Are our RESOURCES DEPLOYED to SATIFSY the PATIENT MIX?
What is the PROFITABILITY across SURGERY for the ENTEPRISE for THIS YEAR vs. LAST YEAR?
ExecutiveUser
Functional User
Power User
Highly Aggregated
More Detail
Complete Raw Data
• Graphical Display, Dashboards, Interactive
• Aggregated Data
• Controlled Drill Down
• Standard & Ad hoc Reporting
- Parameter-Driven by Users at Run-Time
- Sorting, Selection, Filtering, Drill-Down
• Utilizing Standard Functions and Models
• Direct Access to Detailed Raw Data
• Model Development & Deployment
Traceability Consistency
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Healthcare Provider: Service Line Definition & ManagementHealthcare Provider: Service Line Definition & Management
The Need• Needed Integrated Strategy and Platform for Analytics,
Supporting Both Health System and Hospitals
• Needed Standard Service Line Definitions & Performance Metrics
The Solution• Multi-Tiered Analytics Data Architecture and Platform
• Initial Service Lines, Configurable Business Rules, Market and Benchmark Data, Organizational Assessment
The Benefits• Improved Service Line Analytics, Performance Metrics,
Anticipating Unified Clinical, Operational, Financial Views
• Shorten Time to Decision, Anticipated Improvements Across Continuum of Multiple Care Settings
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Healthcare Analytics Platforms: Implementation SpectrumHealthcare Analytics Platforms: Implementation Spectrum
BI Analytics FastTrack
Data Quality or Readiness Assessment
Enterprise / Subject Area Data Strategy
Focused Data Mart or Pilot
EDW Solution
Enterprise / Subject Area
ImplementationValue &
Impact to the Organization
Embedded & Predictive Analytics
Quality of Care
Surgical Analytics
Service Line Management
Financial & Strategic Planning
Utilization & Cost
CRM / Marketing
Level of Data Integration
Best Practice Alerts
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Challenges Facing Today’s Healthcare ProvidersChallenges Facing Today’s Healthcare Providers
• Improved patient care and satisfaction• Improved quality and accessibility of medical care• Better reporting and improved tracking – increasing transparency• Need to reduce and minimize medical errors
Tight competition and customer demand for high quality care
• Better financial and operating control• Streamlined administration, ancillary and critical support activities• Consolidated back office systems for better real-time patient information• Focus on service line management
Rising operating costs
• Need to align with key cost and margin trends by clinical service line• Balance costs due to evolving operating environment, new technology adoption and quality of care given diminishing reimbursement trends• Respond to changing demographics and plan for future reimbursements
Reduction in reimbursement from public & private payers
• Automate billing and claims processing activities while adhering to compliance mandates such as HIPAA• Increased reporting of safety and compliance with quality standards
Increased regulatory requirements
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SAP BusinessObjects Planning and Consolidation Best in ClassSAP BusinessObjects Planning and Consolidation Best in Class
Best in
Class
•Industry leading Excel and Microsoft Office Integration
•Packaged Business Process Flows
•Strong multidimensional capabilities
Ease of Use
•Guided Action Panes
•Finance User owned and managed
•Unified Planning, Consolidations, and Reporting
Most Advance
d Capabilities
•Automated Variance Analysis
•Structured and Unstructured Data
•Predictive Analytics
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SAP BusinessObjects Planning and ConsolidationSAP BusinessObjects Planning and Consolidation
Most familiar and easiest to use Enables rapid adoption by leveraging
existing Microsoft Office tools (e.g. Excel) and web browsers accessing a central database
Financed owned and managed Report and input wizard templates
Pre-defined process flows Configurable business process flows guide
users and drive process consistency
Truly unified solution Single, integrated application reduces
maintenance, improves data integrity, and simplifies deployment while enabling flexible planning & consolidation functions
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An “Implementation Accelerator” DefinedAn “Implementation Accelerator” Defined
Data Model for GL, Payroll, Patient Centric imports Pre-built Business Rules/Logic and defined Business Process Flows Key Input Schedules and Management Reports
Deliverables
Incorporates ‘best practice’ approaches Reduces the implementation time Reduces the implementation cost
Benefits
A pre-configuration of SAP BusinessObjects Planning & Consolidations
Supports hospital budgeting and planning processes Design is a collaboration with existing customers and in-house expertise
Definition
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How SAP streamlines the planning process for healthcare providersHow SAP streamlines the planning process for healthcare providers
Chief Financial OfficerChief Financial OfficerFinance
Manager of ICU
Nursing
Manager of X-RayAncillary
Reimbursement Manager
Reimbursement
• Leverages a familiar interface - Microsoft Office (Excel, Work, Ppt)• Context sensitive “action panes” make navigation easy• Define customer menu & business process flows
A solution designed for the end-userEase-of-use features promote end-user adoption
A configurable, scalable planning platformCan grow and evolve as your planning needs change• Supports Long Range & Capital Planning, Forecasting & Budgeting• Templates-based approach addresses unique modeling requirements• Industry standard technologies – enterprise scalability, web access
With Healthcare Methodologies built-inReduces the cost & time to implement• Configured to streamline hospital budgeting• Data model, pre-configured templates, and pre-built reports• Integrates Volume, Workload, Reimbursement and Expense plans
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Budgeting & Planning for Healthcare:Methodologies OverviewBudgeting & Planning for Healthcare:Methodologies Overview
FinancialReports
BusinessPlanning &
Consolidations
ReimbursementModeling
Global Assumptions
DepartmentLevel Planning
Payroll
GL/ERP
DecisionSupport
Data Imports
• Workload
• Inflation• Efficiency
• Admissions
• Visits• Pt Days
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4
3
5
1
AncillaryDepartments
RoutineDepartments
AdministrativeDepartments
Outpatient
Inpatient
Administrative
Multiple VersionsMultiple Passes
Pre-configured modeling “views”
or “templates”
Pre-configured modeling “views”
or “templates”
Updates to Gross Revenue
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Departmental Budgeting:
A templates-based approachDepartmental Budgeting:
A templates-based approach
• Primary driver is patient days• Operations are 24/7 (shift based)• Must align labor plans to census levels
• Patient days ‘linked’ to Global Stats• Staffing Grid helps set labor requirements
according to ADC targets• Projection methods for non-labor:
•Variable Method •Input Total •Input Monthly •Fixed and allocated totals
• Refine workload given top-down targets• Ability to refine labor given the impact of
volume changes on dept workload
• Ability to assess volume impact on plan• Set labor plan by skill mix, revisions made
against historical run rates• Incorporate benchmarks• Projection methods for non-labor:
•Variable Method •Input Total •Input Monthly •Fixed and allocated totals
• Require more simplified views• Little ‘volume impact’ on plan• A ‘bottom-up’ approach
• Labor plans set by Employee:•Add new/terminate •Transfer between departments
• Planning methods for non-labor:•Input Total (choose spread)•Input Monthly •Fixed (allocated totals)
Nursing Ancillary Administrative
Planning Requirements: Planning Requirements: Planning Requirements:
Points-of-control: Points-of-control: Points-of-control:
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SAP BPC Live Product DemoSAP BPC Live Product DemoR
epo
rt Distribute plans and analyze variances to drive re-forecasts
An
alyz
e
Consolidate and model multiple scenarios
Co
llect
Collaboratively create plans and forecasts
Co
mm
un
icat
e
Communicate top down targets, timelines, and guidelines
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SummarySummary
Why Now?
• Today’s market demands quicker and more accurate data
• Spreadsheets are error prone and require too much maintenance
• Budgeting, Consolidations, and Reporting must be integrated
Why SAP BPC?
• Built –in Healthcare best practice
• Benefits of Excel without the downside
• Easiest to implement, learn, and maintain
Why Edgewater?
• Leverage our strong EPM expertise and complementary Healthcare knowledge
• Proven engagement models – partner, consultant, technical, organizational
• Enable client success – excellent client references
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Thank You for Joining UsThank You for Joining Us
To schedule a live demonstration, or for more information about Edgewater Technology and our Healthcare Practice, contact:
Maury DePalo Jennifer LyDirector, Healthcare Practice BPC Project Lead781-246-3343 [email protected] [email protected]
Q & A